Corporate Peer Challenge: Portsmouth City Council

The peer challenge team found that everyone at the council, officers and members alike are committed to doing the best for Portsmouth.

Both the Chief Executive and the Leader of the council are well-respected by the council’s partners. The council is generally considered to be a good partner and responsive.

The peer challenge team found that Portsmouth is a good council, that is performing well and doing some innovative work particularly in housing, social care, and finance. The peer challenge team saw evidence of good performance across many key services, as demonstrated by recent Ofsted Inspections and key performance data. However, some significant challenges remain in terms of the Local Plan and housing delivery.

Overall, the council is in a good financial position, but the council should continue to closely monitor the risks from commercial investments, particularly given the complications of COVID-19 and the potential short and medium-term impacts this could have.

There was good evidence of engagement with local communities, particularly on issues such as housing and housing safety. Members of the peer challenge team were taken onsite to see the work being done on council housing blocks affected by dangerous cladding and were impressed with the steps taken to address the issues ensuring residents were engaged during the process.

There are some opportunities to extend the existing cross-party working to housing supply targets, major developments, and the Local Plan. This will be particularly important as the council develops the Local Plan which is a responsibility of the council as a whole and will need to be agreed at Full Council.

There are also opportunities for greater collaboration across the member-officer interface and for greater joint working. The peer challenge team also found that there could be more cross-departmental working on strategic issues and more communication across departments.

The peer challenge team reviewed data on Equalities, Diversity and Inclusion (EDI) and interviewed the officers who lead on this at the strategic level. The peer challenge team found that there needs to be a stronger emphasis on EDI at the council. Officers acknowledge that this is an area for development for the council.

During interviews some concerns about capacity were raised by staff and some members as well. The council should satisfy itself it has the necessary capacity to deliver its ambitions in a way that doesn't compromise on quality. Where this is not the case the council needs to review and prioritise its ambitions.

The peer challenge team are of the view that there is an opportunity to review arrangements for corporate assurance on issues such as performance, data, insight, and risk management. These arrangements are in place but could be further developed and strengthened.

There are a number of observations and suggestions within the main section of the report. The following are the peer team’s key recommendations to the council:

Recommendation 1:

Create more time and spaces for collective reflection and long-term planning for the future (members, senior officers and then jointly)

Recommendation 2:

Create opportunities for Directors, Heads of Service and wider staff to come together more regularly to understand, discuss, collaborate, and contribute to future council agendas

Recommendation 3:

The whole council needs to collectively grip the issue of the Local Plan, housing supply targets and housing delivery –or risk losing control of its destiny in terms of planning powers. It will need strong cross-party working to do this.

Recommendation 4:

Undertake an Independent Review of the internal governance, constitutional and scrutiny arrangements, including a review of officer-member behaviours and the overall culture, to ensure closer member-officer working relationships

Recommendation 5:

Begin a dialogue with members on the approach to training and development taking into account the outcomes of the Independent Review

Recommendation 6:

Develop a strong corporate approach to the equalities, diversity, and inclusion agenda, learn from good practice and ensure it is embedded across the organisation

Recommendation 7:

Review key strategies and plans in the light of Brexit, the pandemic and other external changes, balancing short and long-term issues e.g. city centre

Recommendation 8:

Find the most impactful approach to health and care integration changes that ensures the best outcomes for the people of Portsmouth

3.1 The peer team

Peer challenges are delivered by experienced elected member and officer peers. The make-up of the peer team reflected the focus of the peer challenge and peers were selected on the basis of their relevant expertise. The peers were:

• Cllr Richard Kemp CBE, Liverpool City Council, Member Peer
• Andy Donald, Chief Executive Peer
• Nazeya Hussain, Executive Director of Place, Royal Borough of Kingston-Upon-Thames, Officer peer
• Jamaila Hussain, Director of Prevention and Commissioning, York City Council, Officer peer
• Maria Burton, Assistant Director, Transformation Adult Social Care, London Borough of Lambeth, Officer peer
• Angela Kawa, LGA Peer Challenge Manager
• Rachel Stevens, LGA Support Officer

3.2 Scope and focus

The peer team considered the following five themes which form the core components of all Corporate Peer Challenges. These areas are critical to councils’ performance and improvement.

1. Local priorities and outcomes - Are the council’s priorities clear and informed by the local context? Is the council delivering effectively on its priorities? 
2. Organisational and place leadership - Does the council provide effective local leadership? Are there good relationships with partner organisations and local communities?
3. Governance and culture - Are there clear and robust governance arrangements? Is there a culture of challenge and scrutiny?
4. Financial planning and management - Does the council have a grip on its current financial position? Does the council have a strategy and a plan to address its financial challenges?
5. Capacity for improvement - Is the organisation able to support delivery of local priorities? Does the council have the capacity to improve?

In addition to these questions, you asked the peer team to provide feedback on:

6. Health and care integration

3.3 The peer challenge process

Peer challenges are improvement focused; it is important to stress that this was not an inspection. The process is not designed to provide an in-depth or technical assessment of plans and proposals. The peer team used their experience and knowledge of local government to reflect on the information presented to them by people they met, things they saw and material that they read.

The peer team prepared by reviewing a range of documents and information in order to ensure they were familiar with the council and the challenges it is facing. The team then spent two days virtually with the council and two days onsite at Portsmouth City Council offices, during which they:

• Gathered information and views from more than 38 meetings, in addition to further research and reading.
• Spoke to more than 153 people including a range of council staff together with members and external stakeholders.

This report provides a summary of the peer team’s findings. In presenting feedback, they have done so as fellow local government officers and members.

4.1 Local priorities and outcomes

The peer challenge team reviewed the City Vision and found it to be ambitious, clear, and well-articulated. There were good levels of awareness and enthusiasm amongst partners, members, and senior managers for the City Vision.

The peer challenge team found that there are some opportunities to review the council’s approaches to local priorities such as economic development, post-COVID & post-Brexit. COVID and the impact on the local economy is significant, and it is likely that COVID will have some medium and possibly long-term effects which are still emerging. Similarly, Brexit is also clearly having an impact on the local economy and local priorities. This is particularly the case for Portsmouth where the council-owned port generates significant income for the council. The council will need to consider these effects carefully and, in some cases, may need to change plans and policies to adjust to these effects. Risks will need to be carefully monitored and managed.

The peer challenge team found that there is a need to establish a clearer link between the opportunities being pursued, and the long-term socio-economic issues. For example, educational attainment has rightly been identified as an issue for some demographics, can efforts to improve attainment be better linked to economic development and projects that are planned?

The council should also consider how to move from a strong approach to managing system issues, to a preventative approach for even greater impact. Can some of the issues that have occurred be avoided by adopting a preventative approach, intervening earlier, working with key partners as required.

In interviews with the peer challenge team, staff conveyed some concerns about capacity to deliver. The council is doing many good things but along with many other local authorities up and down the country back-office staff have been reduced. The capacity to deliver now feels stretched. The council should consider if any areas need more capacity; if there should be some work on re-prioritisation; or whether the council should be doing less in some areas.

The peer challenge team reviewed the council’s performance management, data collection and risk management. Whilst data is being collected and analysed so the council can monitor performance, it was harder to establish if the council knows the impact it is making. If performance management data had a greater focus on outcomes and impact the council would be in a better position to evaluate the impact of the good work it is doing.

4.2 Organisational and place leadership

There are real challenges for the council in respect of the Local Plan, the housing supply targets and housing delivery. The whole council needs to grip this issue collectively or risk losing control of its destiny in terms of planning powers.

The peer challenge team saw evidence of good levels of community engagement in Portsmouth. The council is actively engaging with the community and on important issues such as building safety and housing, is doing some very good work with the community which should be applauded.

Some excellent partnership relationships have been established by the council during the pandemic response. These relationships can be built on and further developed going forward beyond the pandemic.

The council has a strong outward focus. In interviews it was clear that partnership relationships with the districts along the Solent are good. There remain some ongoing tensions with the county in respect of devolution agenda.

The council has a clear agenda for Portsmouth articulated in the City Vision. The peer challenge team were less clear on the prioritisation of the sub-regional agendas. The council should consider how to prioritise those agendas to get the maximum benefit for Portsmouth communities.

The peer challenge team found that whilst the Cabinet and Leadership team have good working relationships on individual levels, there could be more joint working on the longer-term issues. The peer challenge team recommends establishing more spaces for the Cabinet and Leadership Team to come together to discuss longer-term city issues. This could take the form of joint meetings or joint away days.

The peer challenge team are also of the view that there could be greater cross-departmental working. The peer challenge team encourage the council to establish more opportunities for staff to come together across departments to shape future agendas – building on the COVID response collaboration.

In interviews the approach to learning and development was discussed. The peer challenge team believe that a more corporate approach to learning and development – in particular in respect of leadership and political nous could be developed. This would benefit staff and help the council to retain and develop officers who want to progress their career.

Portsmouth is a diverse city with a population that is changing. The council has started work on Equalities, Diversity, and Inclusion. The new staff networks are a positive development but have not been embedded yet. The peer challenge team believe that this initial work can be built on. Interviewees acknowledged that the council has made a start in respect of the Equalities, Diversity and Inclusion agenda but needs to do more. The peer challenge team believes that a clear direction and plan is needed on how to support Portsmouth’s diverse residents and customers, including through the local market and commissioned services.

Staff were generally very positive about the experience of working at Portsmouth City Council. However, in some interviews, a number of staff raised concerns on EDI, saying that they had on occasion, observed behaviours and comments that were inappropriate. Some Black, Asian and minority ethnic (BAME) staff were concerned they could be pigeonholed into certain roles such as community development. In the view of the peer challenge team, there needs to be a clear strategic approach to the workforce, supporting people from diverse backgrounds to become confident to take on management roles. Staff welcomed opportunities for development and the prospect of a new focus on EDI within the organisation.

The peer challenge team believe that championing the EDI agenda at the senior leadership level will help the organisation to develop further in this area. With better data on workforce and a greater focus on EDI, the organisation can achieve much more than it is currently in this area.

In interviews staff stated that they welcomed home working when it was introduced during the pandemic. However, staff were less clear on the long-term plans regarding working arrangements, although a number did mention that they understood this was being considered by senior staff. There needs to be more clarity regarding the post-pandemic working arrangements, for example will staff be offered more flexibility than was available pre-pandemic with some continuation of home working where this is appropriate?

4.3 Governance and culture

There is a strong commitment by all, both officers and members, to do what is best for the city. This came through clearly in interviews with officers throughout the organisation, and in interviews with senior members and backbench members.

Whilst the council’s image for the city is well articulated in the City Vision, staff awareness of the new City Vision values is low. The council has cascaded the values to staff but may need to consider a different approach to embed the values using an engagement approach rather than continuing to cascade the values.

In interviews there were some frustrations from both officers and members on aspects of the local process of democracy. For example, the length of Full Council and the role of scrutiny.

The peer challenge team are of the view that this presents an opportunity to independently review governance arrangements relating to democracy at the council. This would allow the organisation to explore opportunities for improvements and consider if any changes are needed in terms of officer capacity to facilitate these new ways of working.

The council has a member development programme and newly elected members are supported as they take up their roles. Appropriate training is provided on the role of councillors and the importance of quasi-judicial committees such as licensing. The peer challenge team recommends that member development and support is discussed with councillors to ensure that members are receiving the right development that meet their needs. This is an area that the LGA may be able to assist with as part of the ongoing training provided to senior councillors, newly elected members and with the provision of bespoke workshops.

The peer challenge team found that there is an appetite for different forms of collaboration between members and senior officers, with a chance to come together to discuss this. The council could consider engaging with councillors to discuss the best ways to collaborate.

4.4 Financial planning and management

The finance function at the council is strong and well-respected. The peer challenge team were impressed by the financial management team. The team were able to demonstrate good and disciplined financial management.

The peer challenge team reviewed the Medium-Term Financial Plan and found it to be credible and well thought through. The council has a good understanding of the overall financial position and its commercial investments.

The council does have a significant dependency on commercial investments and enterprises like the port. However, these investments appear to be well considered with good risk management of the investments. The council should continue to closely monitor these investments and actively manage the risks they present.

The internal audit function at the council is a strength and is well-utilised. The peer challenge team were impressed by the internal audit team and were pleased to hear in interviews that senior officers make good use of the internal audit function and actively identify areas for internal audit to consider, taking onboard their recommendations.

In interviews there were some frustrations about the lack of capacity to switch from reactive approaches, to managing demand and in the longer term prevent demand. Some of the biggest financial pressures for unitary councils are in demand-led services such as housing and adult social care. If the council can move towards early intervention and prevention this will assist the council in its efforts to manage budgets for demand-led services.

Having reviewed the documentation made available to the peer challenge team, risk management, IT arrangements and corporate assets should be reviewed to ensure that risks are actively managed; that IT arrangements are sufficient for the changing demands of services; and those corporate assets are managed effectively in the changing context of the economy, bearing in mind COVID and Brexit.

4.5 Capacity for improvement

The peer challenge team found a strong Cabinet and Senior Leadership Team. Partners spoke highly of both the officer leadership of the Chief Executive and his senior leadership team, and the political leadership of the Leader of the Council.

Whilst partners respect the Chief Executive and Leader of the Council, and there are some good partnerships, the peer challenge team found that there could be stronger partnership arrangements. Strengthening these arrangements could help the council in some areas where it would be difficult for the council to deliver change alone, for example the delivery of employment & skills, which is a key priority.

In interviews, a number of staff raised concerns about the capacity to deliver against expectations. Raising the question are people are spread too thinly across too many priorities? The peer challenge team urge the council to consider this question and ensure that key priorities remain the focus.

The peer challenge team found that there was appetite for more central functions where there is duplication. For example, the creation of a single intelligence and insight hub would ensure that data is analysed centrally and that expertise in this area is easily accessible for staff across the organisation.

The peer challenge team looked at support for members and the democratic functions of the council. There does not appear to be dedicated scrutiny staff and as stated elsewhere in this report there are concerns that scrutiny could function more effectively. If significant changes are made to the way scrutiny operates then the staffing arrangements may need to change.

During the pandemic Portsmouth City Council had to rapidly enable many of its staff to work remotely and increase residents’ access to digitally delivered services. The senior leadership of the council recognise that work is needed to improve the IT and digital offer, building on the changes made during the pandemic.

4.6 Health and Care Integration

The Chief Executive’s engagement on the issues of health and care integration is a real asset. The Chief Executive is well-respected and understands the difficulties and opportunities that health and care integration present the council with.

The peer challenge team believes that there is an opportunity to clearly define Portsmouth’s place in the emerging Integrated Care System (ICS) and Integrated Care Partnership (ICP). It is important for the council to understand its place in the system, whether the organisation takes a lead, or plays a role in a wider ICS. The council should also consider its role as a provider in either context as providers will be an important of the ICP.

The peer challenge team found that whilst efforts are being made to establish and strengthen relationships in health and care, some improvements could be made. The peer challenge team are of the view that the council should continue to seek a more positive working relationship with acute and secondary care in particular.

The peer challenge team reviewed evidence presented and interviewed key partners finding that the external care market is fragile. The council are aware of this and need to be ready to make decisions about future options. For example, commissioning care, providing care or buying care packages, are all options which could be pursued to address this issue.

Whilst the external market is fragile, the peer challenge team found that the sustainability of services is beginning to be addressed through the Sustainable Care Strategy that is being developed.

Interviewees from the council were clear that prevention will be an important part of health and care integration. However, it was less clear how the system will shift from management to prevention. The council could benefit from more joined up integrated commissioning with health.

The peer challenge team also believe that there are opportunities for the council to engage earlier with wider partners on social care such as: care providers, Learning Disability (LD), and the community and voluntary sector etc.

It is recognised that senior political and managerial leadership will want to consider, discuss, and reflect on these findings.

Both the peer team and LGA are keen to build on the relationships formed through the peer challenge. The CPC process includes a six-month check-in meeting. This will be a short, facilitated session which creates space for the council’s senior leadership to update peers on its progress against the action plan and discuss next steps. 

In the meantime, Will Brooks, Principal Adviser for the South East, is the main contact between your authority and the Local Government Association. Will Brooks is (email: [email protected]) available to discuss any further support the council requires.